Practice guide: Incentivising employees after a transaction

SPEED READ Effective incentives for employees are key especially following an acquisition. Using HMRC approved plans and linking awards to corporate targets is a tax-effective way to reward employees and enhance performance of the company. The tax-effective nature of the plans minimises corporate cost but enhances benefits to employees through tax savings. Similarly, unapproved arrangements can be used to deliver tax-efficient reward to executives. Structuring tax-effective pay through salary sacrifice brings savings that cumulate year on year and using HMRC staff suggestion schemes can be used to make tax-free payments to stimulate commercially valuable ideas from staff.